Thursday, 2 July 2026 · London Edition · 07:30 London

The Mag7 just lost $2T in June — Burry says it's just the start.

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Signals

⚡ Convergence radar: Sell GOOGL×4

AI/Tech selloff

The Magnificent 7 shed $2 trillion in market cap during June, pushing them into the red for the year, and the Asian chip selloff has spread to Korea, raising fears that the AI rally has overshot. Meta's plan to sell AI computing power adds a fresh oversupply narrative. EWY, the Korea ETF, is down 9.5% in a week, reflecting broad regional tech weakness. With momentum broken, traders are shorting into any bounce.

MSFT

Sell Microsoft — $2T Mag7 loss in June, MSFT -18.7% YTD, and oversupply fears from Meta's AI plan.

$384.3 +3.02%
NVDA

Sell Nvidia — NVDA only +4.6% YTD, far off highs, and chip selloff hit Korea; downside risk intact.

$197.6 -1.25%
META

Sell Meta — META’s AI computing plans spark oversupply concerns, on top of Mag7 June rout; YTD -5.8%.

$612.9 +8.81%
AAPL

Sell Apple — Mag7 selloff impacts AAPL despite YTD +8.6%; AI demand uncertainty weighs.

$294.4 +1.73%
GOOGL

Sell Alphabet⚡ — Google antitrust fine compounds Mag7 June loss; antitrust overhang.

$361.2 +1.07%
AMZN

Sell Amazon — Amazon not immune to Mag7 rout; YTD +6.7% but June slump significant.

$241.7 +1.41%
EWY

Sell Korea ETF — Korean chip stocks led selloff after AI fears, EWY -9.5% in 1 week; momentum negative.

$185.5 -8.12%

Burry's AI shorts

Michael Burry is shorting TSLA, CAT, AMAT, and the SMH chip ETF, calling it the 'beginning of the end' for AI names. His bets align with the Mag7 selloff and Asian chip weakness. TSLA YTD -2.9%, CAT +65.7% YTD but last session -6.9%, AMAT +142.1% YTD but last session -9.97%, SMH +66.2% YTD but last session -5.4% — all show signs of topping. The explicit short positions from a famed contrarian add weight to the bearish case.

TSLA

Sell Tesla — Burry explicitly shorting Tesla; TSLA -2.9% YTD, momentum waning.

$425.3 +1.12%
CAT

Sell Caterpillar — Burry shorting Caterpillar; CAT +65.7% YTD but last session -6.9% suggests reversal.

$991.4 -6.90%
AMAT

Sell Applied Materials — Burry shorting Applied Materials; +142.1% YTD, last session -9.97% top signal.

$650.9 -9.97%
SMH

Sell Semiconductor ETF — Burry shorting chip ETF; SMH +66.2% YTD, last session -5.4%, topping.

$620.5 -5.40%

Google antitrust

A Swedish court ordered Google to pay Klarna $2 billion in damages for favouring its own price-comparison tool, a rare antitrust financial penalty in Europe. FT and WSJ both report the ruling, which adds to Google's regulatory headwinds. While Alphabet trades at 24.8x forward P/E and +14.6% YTD, the damage to its monopoly position could be larger than the fine.

GOOGL

Sell Alphabet⚡ — Two sources report $2bn fine; antitrust risk caps upside for Alphabet, despite +14.6% YTD.

$361.2 +1.07%

Crypto stocks dip buying

Ark Invest capitalized on the June crypto sell-off, buying $44M of Coinbase, $25.25M of Circle Internet, and $8.2M of Bullish shares. COIN ended June 20% lower, CRCL down 40%, BLSH down 27%. COIN popped 8.9% last session on the disclosure, but remains 64% below its 52w high. The buying signals conviction in a sector often pummeled; but it's a single fund's move, not a market bottom.

COIN

Buy Coinbase — Ark's $44M buy after -32.7% YTD decline; COIN surged 8.9% last session but still far from highs.

$159.2 +8.93%
CRCL

Buy Circle Internet — Ark bought $25.25M of CRCL after 40% monthly drop; -25.8% YTD, deep value bet.

$61.95 -1.09%
BLSH

Buy Bullish — Ark added $8.2M of BLSH at -35.7% YTD; speculative but low float.

$25.23 +7.68%

Data center engines

Small-engine makers Cummins and Generac are gaining traction as data center operators seek off-grid power solutions. Both stocks have surged YTD (+30.7% for CMI, +91.5% for GNRC) but sold off last session (-4.3% and -7.7% respectively), suggesting profit-taking. The original thesis is underappreciated, but valuations are stretched—Cummins at 20.1x forward P/E, Generac at 24.1x with trailing P/E 84.7.

CMI

Buy Cummins — Data center engine demand drove CMI +30.7% YTD; last session -4.33% may be entry opportunity.

$682.3 -4.33%
GNRC

Buy Generac — GNRC +91.5% YTD on engine momentum; pullback to -7.7% last session could reset overbought conditions.

$270.2 -7.71%

Contrarian China

Bulls are betting on China's FXI ETF, which sits deep in a bear market after a 19.7% YTD drop. The contrarian call comes as US stocks have outperformed. FXI trades at 0.79x book and a trailing P/E of 9.3, signaling deep value if sentiment shifts. But no catalyst is cited; the trade is purely a valuation bet.

FXI

Buy China large-cap — Contrarian bulls see FXI at -19.7% YTD as oversold; 0.79 P/B offers deep value, but China risks remain.

$31.97 +1.20%

Crypto rally on Warsh

Fed Chair Warsh's comments that inflation risks have come down triggered a crypto rally, with Bitcoin topping $60k and Solana up 16% on the week. Ether also gained. The dovish tilt gave new life to beaten-down cryptos after a tough month.

SOL-USD

Buy Solana — Solana led rally with 16% weekly gain on Warsh dovishness; momentum continues.

ETH-USD

Buy Ether — Ether benefitted from crypto broad rally after Warsh comments, though not as strong as Solana.

Bitcoin: conflicting calls

Bitcoin is caught between a bullish call from Cantor Fitzgerald, who says the bear market may be ending, and bearish options flow with traders loading up on $50k puts. Cantor's analysis points to a cycle bottom in coming months; meanwhile, heavy put buying suggests near-term downside risk. Bitcoin's price at $60k is at a battleground.

BTC-USD

Watch Bitcoin — Cantor sees cycle bottom, but put option buying at $50K shows bearish sentiment; no clear direction yet.

“bitcoin's cycle points to a market bottom in the coming months”

Private credit warning

Medallia's faceplant highlights rising risks in private credit, with implications for broader BDC and loan ETFs. BBDC is down 6.6% YTD, SRLN -3.0% YTD. The FT article suggests that defaults could rise, pressuring these vehicles.

BBDC

Sell Barings BDC — Medallia default flags private credit risks; BBDC -6.6% YTD, could see further declines.

$8.63 +1.29%
SRLN

Sell Senior loan ETF — Leveraged loan ETF SRLN near high but YTD -3.0%, vulnerable to credit stress.

$40.05 -0.02%

Goldman broadening

Goldman's strategist Oppenheimer sees stock gains broadening in the second half, with tech earnings still a key driver. SPY is near all-time highs, up 9.2% YTD, and QQQ up 18.3%. The call supports buying the market, but it's stale consensus.

SPY

Buy S&P 500 ETF — Goldman sees broadening rally; SPY at 52w high, +9.2% YTD, momentum strong.

$745.8 -0.14%
QQQ

Buy Nasdaq 100 ETF — Tech earnings to drive broadening gains; QQQ +18.3% YTD, near highs.

$725.2 -1.52%

Japan tech opportunity

A WSJ column suggests tech bulls keep an eye on Japan, where equities may offer value. EWJ is up 14.4% YTD and only 5% below its 52-week high, showing strong performance. The call is unspecific, but the trend is with longs.

EWJ

Buy Japan equities — EWJ +14.4% YTD, near highs; Japan tech seen as an opportunity, but no specific catalyst.

$93.05 -0.24%

Nuclear revival

Nuclear generation and capacity are rising, per a WSJ opinion piece. NUCL, a nuclear energy ETF, is up 10.5% YTD but 33% below its high. The thesis is long-term and underfollowed.

NUCL

Buy Nuclear energy — Nuclear capacity increase supports NUCL; +10.5% YTD but still well off highs.

$9.56 -0.52%

Eni-Mercuria JV

Eni and Mercuria formed a global commodities trading joint venture, trading oil, gas, LNG, and biofuels. The JV operates independently, potentially enhancing Eni's trading capabilities. Eni stock trades at a forward P/E of 8.5, cheap, but last session fell 2.75%.

E

Hold Eni — Eni-Mercuria JV adds trading flexibility; low P/E 8.5, but near-term catalyst absent, hold.

$45.57 -2.75%

Most original take

Jinjoo Lee · WSJ Business · 1 Jul 2026

Small-Engine Makers Gain Big Momentum in Data Centers

While hyperscalers race to build out AI capacity, powering those data centers remains a bottleneck. A WSJ piece highlights that small-engine makers like Cummins and Generac are emerging as cheap, fast alternatives to large gas turbines for off-grid power, suddenly in hot demand.

Read original ↗

Our view

The Mag7 just lost $2 trillion in June, and Michael Burry is shorting AI names — yet the S&P 500 is within 2% of a record high. That dissonance is today’s regime: a rotation out of mega-cap tech into the rest of the market, as Goldman’s Oppenheimer forecasts. The data supports it: SPY at $745.80 with a YTD gain of 9.2%, while the QQQ is up 18.3% but has slipped 1.5% in the last session. The Mag7 giants are bleeding — MSFT -18.7% YTD, META -5.8%, NVDA +4.6% but well off its high — while old-economy plays like Cummins (+30.7% YTD) and Generac (+91.5%) have roared. The broadening isn’t a guarantee; it’s already underway.

The bear case against this rotation is that it’s merely a pause, not a regime change. AI earnings could re-accelerate in Q2, and the recent selloff in chip stocks and Tesla might prove a buying opportunity. Fed Chair Warsh’s dovish comments yesterday already lifted beaten-down assets like crypto, suggesting that liquidity remains supportive. If inflation continues to cool, the growth trade could roar back, punishing the shorts. Burry’s ‘beginning of the end’ call might be premature — the end of what, exactly? He’s been early before.

What’s conspicuously absent from today’s coverage: any mention of credit markets. With private credit risks surfacing via Medallia, and spreads still relatively tight, there’s a blind spot. If the AI unwind ripples into broader risk aversion, leveraged loans and BDCs could take a hit. BBDC and SRLN are still near lows, but no one’s sounding the alarm loudly. Watch for high-yield ETF flows — a sell-off there would confirm the rotation isn’t just sectoral but a full risk-off shift.

The cleanest expression of today’s signals: go long the SPY/QQQ spread (bet on broadening) via a relative value trade. Or, if you believe Burry, the SMH put is the simplest way to short AI without picking individual names. We think the rotation has legs, but keep a stop at SPY’s 52-week high — a breakout there would signal the Mag7 is coming back.

Yesterday's signals, today

From the London Edition on 1 Jul 2026 — 1/1 signals moved in the predicted direction.

Today's scan: 223 articles considered · 17 surfaced · across 13 publishers

Generated Thu 2 Jul 2026 6:38am London · 13,069 views

Bloomberg Markets · CNBC Investing · CNBC Markets · CoinDesk · FT Alphaville · FT Companies · FT Lex · FT Markets · MarketWatch Top · Nikkei Asia · SCMP Business · The Information · WSJ Business · WSJ Markets

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